Home > Agriculture > Kerry Group records revenue of 3.2bn for the half year ended 30 June 2017

Kerry Group records revenue of 3.2bn for the half year ended 30 June 2017

Written by Robert McHugh, on 10th Aug 2017. Posted in Agriculture

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Kerry Group has today released its latest Interim Management Report for the half year ended 30 June 2017.

The results show that group revenue increased by 4.8% to €3.2 billion reflecting 3.8% business volume growth. Trading profit increased by 5.2% to €338m. 

Growth in the foodservice channel continues to outpace growth in traditional retail outlets. E-tail and convenience channels also continue to grow strongly in selected consumer preferred categories. 

Taste & Nutrition delivered 4.2% growth in business volumes and pricing increased by 1.7%. Kerry Foods’ business volumes increased by 2.3% and divisional pricing increased by 1.9% across the half year.

The Group trading margin was maintained at 10.6% reflecting 20 basis points improvement in Taste & Nutrition, positive underlying margin improvement in Kerry Foods offset by adverse sterling exchange rates resulting in a 70 basis points margin reduction, and an increased spend on the Kerryconnect Programme.

Adjusted earnings per share increased by 7.5% to 143.8 cent (H1 2016: 133.8 cent). Basic earnings per share increased by 0.9% to 127.6 cent (H1 2016: 126.4 cent). The interim dividend of 18.8 cent per share represents an increase of 11.9% over the 2016 interim dividend. 

Net capital expenditure amounted to €102m (H1 2016: €63m). The Group achieved a strong free cash flow of €357m in the period (H1 2016: €379m). 

Commenting on the results, Kerry Group Chief Executive, Stan McCarthy said, "Against a background of significant adverse currency movements, we achieved a strong overall business performance in the first half of 2017, outperforming market growth rates and delivering a 7.5% increase in adjusted earnings per share. In February 2017 we guided growth in adjusted earnings per share of 5% to 9% at prevailing exchange rates. Taking into account increased currency translation headwinds of 4% and a 2% improvement in underlying performance at constant currency rates, we now expect to achieve growth in adjusted earnings per share of 3% to 7% on a reported basis to a range of 333.1 to 346 cent per share (2016: 323.4 cent)."

Source: www.businessworld.ie

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